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Opportunities, Challenges in Market for Solar Energy, Storage

Daniel Rosende - SMA Solar
Director General

STORY INLINE POST

Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Tue, 05/23/2023 - 13:35

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Q: What role does Mexico play in SMA's global strategy?

A: Mexico, Chile and Brazil are key to SMA's strategy in Latin America for the development of photovoltaic solar energy. Latin America is important because it is a growing region, so there is much to do and develop. Mexico plays an important role in the energy transition within the region and the PV sector has developed the most in the country, in particular in the Distributed Generation segment. While there were numerous large solar projects in the past, unfortunately, many have stopped. However, we recognize Mexico’s potential for PV and the new role that the energy storage industry will have.

Q: What can solar energy bring to Mexico in terms of growth?

A: The main advantage of solar energy is that it allows for more sustainable, decentralized electricity generation in which each user can manage what they produce and consume. For this to be a reality, it is necessary for reliable technology to be available. Above all, the product must also have the best quality and performance in the long term because otherwise the whole concept of solar energy collapses like a house of cards.

In Mexico, we work hand in hand with authorized distributors, which purchase directlySMA and distribute our solutions. We train them so they can transfer the knowledge to their clients. We care about promoting this sector in Mexico and we are replicating our experiences from more advanced markets, such as the EU and the US.

Q: How does SMA innovate to stay relevant in terms of technology?

A: We create solutions that continue to provide value to users. The key aspect is quality. There is no innovation without quality. All solutions must accompany the user for the long term because PV modules often have a useful life of 20 to 25 years, or more. If the inverters are not reliable for that long, the complete installation could fall apart.

Q: How have you navigated Mexican operations over the past year, regarding regulation and market trends?

A: We are constantly monitoring all potential regulatory changes. Our solutions are certified by Mexican regulators. We remain one of the main manufacturers of technology for the solar sector in Mexico and continue to be among the three main suppliers in this sector. 

SMA is experiencing high demand globally, which has created a complex situation since it has become difficult to satisfy all markets, especially due to the large demand from the EU and the US. The war in Ukraine has also increased the call for energy independence, such as through solar installations, impacting global markets in terms of equipment availability.

Q: What projects are you proud of from last year and what do you expect from this and next year?

A: We are proud of our work with all of our distributors. We will also soon have our technology installed in one of the first large-scale storage projects in Mexico. However, we are focusing mainly on the industrial commercial and the residential segments until a new regulation scheme for large-scale PV+Storage is available in the country. We are optimistic about what may come from the large-scale sector in the new future.

Q: What setbacks have you faced for the development of storage solutions?

A: Delays in the development of storage have happened in almost every market in the world. In the past, batteries were not even regulated. But storage systems cover an essential need, as they are energy complementary and backup solutions for the electricity grid. They can stabilize the grid and provide complementary services that were formerly covered by conventional energy sources, such as diesel, gas or coal.

It is important that the local authorities understand that they have to move quickly to define the regulatory framework, particularly regarding the remuneration schemes for this type of project. There are many barriers and it is unclear how developers will be compensated for having storage projects. Chile, one of the most advanced markets in the region, passed a storage law at the end of last year that has provided a clear path to develop these segments. Mexico could follow Chile’s example to develop these policies. The technology is available; it is a matter of setting clear rules.

Q: What is your strategy for Mexico?

A: We always work hand in hand with associations. In Mexico, we partner with ASOLMEX. We want to show the industry our solutions for residential and industrial projects and bring the benefits of PV to a variety of sectors, including food, chemicals and mining. We are experiencing an energy revolution. While we understand that there are barriers, often political, we also understand that the paradigms must be changed.

In Mexico, we seek to maintain our position, supporting our distributors and overcoming the shortage of components and products. It is good that there is great demand but it is also a challenge to satisfy it currently.

 

 

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